Having completed over 130 acquisitions since 2015, Cirsa is looking to continue its aggressive M&A strategy through equity raised in its upcoming IPO.
Spanish operator Cirsa has announced an offering price of �15 per share for its upcoming IPO, aiming for a total market valuation of �2.5 billion ($2.9 billion).
In June, Cirsa announced its intention for an IPO on Spanish stock exchanges, after months of rumours within the industry.
At the time, the company said it expected to raise �400 million, with the hopes this will aid the business to continue its aggressive M&A strategy which has seen Cirsa complete over 130 acquisitions since 2015.
The IPO is still subject to approval by the Spanish National Securities Market Commission, with the offering set to begin once approval of Cirsas prospectus is completed.
The company will offer 26,666,667 newly issued shares in its primary offering, equating to �400 million at its IPO.
Meanwhile, its secondary sale, which will be held solely for the indirect benefit of certain current and former employees, is set to be conducted by LHMC Midco and will offer 3,552,113 existing shares, equivalent to around �53 million.
LHMC Midco will also grant an over-allotment option to the stabilising manager Morgan Stanley Europe, which will be able to acquire up to 4,532,817 additional shares within 30 days of the commencement of trading on the Spanish stock exchanges.
This means the maximum offer size will be 34,751,597 shares, worth �521 million in total.
Cirsas announcement of its long-rumoured IPO comes with the company performing impressively, growing its EBITDA for 67 consecutive quarters when excluding those impacted by Covid-19.
Having been acquired by Blackstone in 2018, Cirsa now holds a presence in 11 global markets, having entered both Peru and Portugal in the last couple of years thanks to acquisitions.
It is this M&A strategy that Cirsa hopes to continue via its IPO. The �400 million equity raise could accelerate the companys growth strategy and strengthen its capital structure.
Between 2025 and 2027, Cirsa plans to strengthen its M&A investment capacity, supported by organic cash flow generation of �400 million-�500 million.
Cirsa CEO Antonio Hostench said: We are taking a defining step to continue writing another page in this extraordinary history of growth by announcing our intention to go public, which will provide us with the opportunity to undertake new projects and continue to consolidate our leadership in the sector.
